SAN DIEGO UNIFIED SCHOOL DISTRICT 2019-20 Second Interim Financial - - PowerPoint PPT Presentation

2019-20 Second Interim Financial Report

Board of Education March 10, 2020

SAN DIEGO UNIFIED SCHOOL DISTRICT

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We Are Here

March 15

Preliminary Certificated Notices

April Classified Notices May 15 Final Certificated Notices June First and Second Reading

• f the Budget and LCAP

Budget Development Timeline

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◆ Second Interim is based on:

◆ Activity from July 1 through January 31 and projecting

through June 30

◆ Governor’s Proposed Budget for 2020-21 ◆ Latest guidance from SDCOE

Second Interim Development

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Governor’s Proposed Budget

Source: California Department of Finance

42.0% 58.0%

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General Fund Multi-Year Assumptions REVENUES

Description 2019-20 2020-21 2021-22 LCFF/State Funding Model Declining Enrollment 102,243 100,709 99,199 COLA 3.26% *2.29% 2.71% Federal Impact Aid $12.2M $10.0M $10.0M Other State Mandated Block Grant $ 3.99M $ 4.04M $ 4.09M Lottery (GFU- $153; GFR-$54) $207/ADA $207/ADA $207/ADA Transfers In $21.3M $31.6M $16.1M *Decrease from 3.0% from projected at First Interim.

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Increased Expenses

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Employer Pension Increased Costs

$ - Mil $3 Mil $10 Mil $14 Mil $13 Mil $14 Mil $8 Mil $12 Mil $2 Mil

GFU Impact $76 Million

* Rates updated to reflect Governor’s Proposed Budget

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General Fund Multi-Year Assumptions EXPENDITURES

*3.7% effective January 1, 2020. **Year over year increase. ***Assumes $55.8M solutions in 2020-21 are one-time.

Description 2019-20 2020-21 2021-22

Expenditures Step and Column: Certificated/Classified 1.78% / 1.05% 1.78% / 1.05% 1.78% / 1.05% Salary Increase* 3.70% 0% 0% STRS** 17.10% 18.40% 18.10% PERS 19.72% 22.80% 24.90% Health & Welfare Premiums 6.00% 6.00% 6.00% Materials & Supplies (Consumer Price Index-CPI)** 3.09% 2.99% 2.89% Utilities $26.3M $25.0M $25.0M Implemented Board Solutions/Budget Shortfall***

• $84.2M

$106.8M Contributions Special Education $233.5M $241.3M $250.5M Restricted Routine Maintenance (RRM) $43.9M $43.3M $41.0M

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2020-21 Solutions

Governor's Preliminary Budget $11.0M Reduction in Contributions $8.0M Funding Opportunities $39.5M Pending Negotiations $3.0M Reductions in Centralized Costs $11.4M May Revise Revenues* $11.3M Total $84.2M

*Should additional Revenue at May Revise not materialize, additional expense reductions will be required.

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◆ Governor’s Budget Updates released in May and June ◆ Impacts of Collective Bargaining Agreements ◆ Strategic layoffs of certificated/classified as needed ◆ Additional unexpected costs or revenues

Potential Shifts

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◆ There are 178 Full Time Equivalent (FTE) listed in the PKS. This is the number of FTE no longer needed in these credential areas across the district, however, this does not mean 178 individuals will lose their jobs. ◆ Employees impacted by the PKS will be able to bump into another credential

• areas. The board must take action to

reduce this number of FTE in order to move employees into the other needed credential areas. ◆ The actual number of layoff notices to be issued is 55.

Certificated Particular Kinds of Service (PKS)

PKS Area Number of Notices Business Education 1 Child Development 25 Foreign Language: French Foreign Language: Spanish 6 General Subjects/ Elementary 18 Special Education: Early Childhood Social Science 2 Visual and Performing Arts: Art 3 Total number of notices to be issued 55

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The procedures require the most senior employees to be offered positions first. Additional options include*:

1. Continued opportunity for employment via reassignment and transfers. 2. Certificated career retraining and/or reassignment (e.g. ECE teachers who want to enter an internship program to become a credentialed teacher) 3. Other employment outside of SDUSD (hosted career fairs with employment offers from our partners). *Some of these options may be subject to bargaining

Options for Impacted Stafg

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◆ Approve the Resolution to Reduce or Eliminate Certain Certificated Services for the 2020-2021 School Year pursuant to Education Code 44949/ 44955 and Article 19 of the SDEA collective negotiations contract as presented.

Recommended Board Action

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◆ Approve the Fiscal Year 2019-20 Second Interim Financial Report and Resolution to declare that the district as Qualified Certification, and identify the amount of budget solutions needed for fiscal years 2020-21 and 2021-22. ◆ This is a self-assigned certification and we have full intent to return to a Positive Certification in 90 days.

Recommended Board Action

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